RUSSIAN ARMY OWES MLRS PRODUCER OVER USD17M

TULA, February 24 (AVN) - Acting President Vladimir Putin has wrote a letter to Nikolai Makarov, the director-general of the local Splav state-owned research and production company, thanking him and his personnel for effective work.

The company administration considered the letter a positive sign, its official told the Military News Agency. It is hoping for Putin's assistance in financing the state order, he said.

The Defence Ministry owes Splav almost RUR500m (USD17.2m) for already produced goods. Besides, it provided only RUR1.5m (USD51,700) of advance payment for the next defence order which is worth dozens of millions of roubles.

"Our products are extremely necessary for troops of the unified federal group in Chechnya, and we are ready to make them at our own expense for some time. However it cannot last forever," the official said.

Splav is famous on the world market for its Grad, Uragan and Smerch multiple launch rocket systems (MLRS). The company currently offers its customers modernised Grad and Smerch systems with the firing range increased almost two times.